List of Halal Stocks in the Dow Jones

List of Halal Stocks in Dow Jones

This blog will introduce the list of halal stocks in the Dow Jones index.

What Is the Dow Jones or the Dow Jones Industrial Average (DJIA)?

The Dow Jones Industrial Average (DJIA), also known simply as the Dow or the Dow Jones, is a stock market index comprising 30 large, blue-chip companies listed on the New York Stock Exchange (NYSE) and Nasdaq. The Dow Jones was first published in 1896. The Dow’s 30 prominent companies are from various major U.S. sectors, except utilities and transportation. A committee selects companies in the Dow Jones, and their composition can vary over time based on economic and financial trends. Some companies may be added or removed from the index displaying the current economic state. The members of Dow Jones must be from the companies of the S&P 500S&P Global, which operates both the Dow Jones and the S&P 500, said that a company is included in the Dow 30 if only it has a good reputation, steady growth, and strong interest from investors. 

 

What Does the Dow Jones Measure?

The Dow Jones index is price-weighted, while other stock indices are market-cap-weighted. The weight of each stock is determined by its share price. For instance, A $50 stock will be weighted more than a $10 stock. If a stock splits, its corresponding weighting in the Dow Jones will be reduced since its price will be about half of what it was before the split.

Despite having other better indicators for the overall stock market performance, Dow Jones appears first over other indexes, such as the Nasdaq and the S&P 500, on newscasts and financial news websites.

The Dow’s 30 companies – are they Halal?

Many Muslim investors do not know whether or not the stocks listed on the Dow Jones are Halal. The answer is yes; 14 listed companies in the Dow are categorized as Halal, according to Musaffa. Almost half of the listed stocks in Dow Jones comply with Shariah criteria.

Shariah-compliant status of the Dow’s 30 companies

The table below alphabetically shows the 30 companies currently listed in the Dow Jones Industrial Average as of 2022. The shariah-compliant status of listed companies in the Dow can be seen below:

 CompanyTickerMarket capShariah-Compliance statusHalal Ranking
1American ExpressNYSE:AXP$108.6 billionNot Halal0
2Amgen NASDAQ:AMGN$127.2 billionHalal5
3Apple NASDAQ:AAPL$2.2 trillionHalal1
4Boeing NYSE:BA$80.8 billionNot Halal0
5CaterpillarNYSE:CAT$104.6 billionNot Halal0
6Chevron NYSE:CVX$305.1 billionHalal2
7Cisco Systems NASDAQ:CSCO$182.6 billionHalal2
8Coca-Cola NYSE:KO$261.9 billionHalal2
9Dow, Inc.NYSE:DOW$40.3 billionNot Halal0
10Goldman Sachs NYSE:GS$97.5 billionNot Halal0
11Home DepotNYSE:HD$276.1 billionHalal4
12Honeywell International NASDAQ:HON$122.3 billionNot Halal0
13IntelNASDAQ:INTC$154.2 billionHalal2
14International Business MachinesNYSE:IBM$123.8 billionNot Halal0
15Johnson & JohnsonNYSE:JNJ$456.4 billionHalal4
16JPMorgan ChaseNYSE:JPM$339.5 billionNot Halal0
17McDonald’sNYSE:MCD$176.3 billionDoubtful 
183MNYSE:MMM$73.8 billionHalal3
19Merck NYSE:MRK$223 billionHalal3
20MicrosoftNASDAQ:MSFT$1.89 trillionDoubtful 
21Nike NYSE:NKE$171.5 billionHalal4
22Procter & Gamble NYSE:PG$328.1 billionHalal4
23Salesforce.com NYSE:CRM$166.5 billionHalal4
24TravelersNYSE:TRV$38.9 billionNot Halal0
25UnitedHealth GroupNYSE:UNH$450 billionNot Halal0
26Verizon NYSE:VZ$212.6 billionNot Halal0
27Visa NYSE:V$405.6 billionHalal4
28Walgreens Boots AllianceNASDAQ:WBA$34.7 billionNot Halal0
29WalmartNYSE:WMT$336.2 billionDoubtful 
30Walt Disney NYSE:DIS$170.6 billionDoubtful 

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